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An auction is a transparent selling and purchasing method designed around a time sensitive marketing process for an item to be sold at a predetermined time. Auctions are conducted and controlled by the Auctioneer.
Owners that utilize the auction selling method understand “time is of the essence”. They choose to avoid further carrying costs of real estate along other personal reasons may be cause to use an auction. For businesses there may be a need to liquidate an obsolete property so they can expand the business into a different property. The farmer & rancher may need to retire out of the agriculture business. And the reasons to have an auctionare limitless.
Buyers welcome this type of opportunity to purchase at the true market value on the determined date and time.
No – As a matter of fact the transparent public open bidding format of selling through auction allows all QUALIFIED Bidders to know the bids, participate and be given knowledge of where the value is at and heading to – and eventually coming to a final bid that reveals the true value the bidding market will bear given the time, place and methods for delivering the auction to the qualified bidding public.
When there is low inventory for the type of real estate being offered, there then may be a higher buyer demand for such real estate, which creates what economists call a “Seller’s Market” – great for competitive auctions.
When there is high inventory for the type of real estate being offered, there then may be a lower buyer demand for such real estate, which creates a “Buyer’s Market” – the auction sets a seller’s property apart from the high inventory of real estate and requires the limited qualified buyer pool to make buying decisions on a specific date and time the auction calls for.
The buyer’s premium is an auction cost service fee that is added to the final successful bid to arrive at the final purchase price. An example of this may be if there is a 10% Premium and the final winning bid is $100,000 then the Final Purchase Price is $110,000 ($100,000 x 1.10). These premium fees can range from 1-10% or even more for personal property sold at auction. Look to find those auctions Big Sky Bid Real Estate Auctions does with NO BUYER PREMIUMS OR Pre-Registration Incentives to reduce or even eliminate all together on Auction Day!
With every auction come Terms & Conditions and a Property Information Packet (Or Sealed Bid Packet) and these should be read and understood thoroughly. You should contact the auctioneer for specifics on what you need (earnest money / deposit needed to register to bid, etc) to be ready come auction day. You should complete all due diligence prior to bidding and get any further professional advice as necessary. Then, if you are the high bidder be ready to sign and execute the Buy-Sell Agreement for a closing usually 30-days out or sooner and provide the required deposit. Make note if the buyer does not complete the purchase earnest monies / deposits are non-refundable.
All properties sold by auction through Big Sky Bid Real Estate Auctions will have its own Sale Bill (Poster, Flyer, etc.), Property Information Packet and Sealed Bid Packet (for Sealed Bid Auctions). In these information sources you will find all the information that the broker/auctioneer have gathered on the property – along with source references to allow interested bidders to follow- up with their own due diligence efforts.
Yes. Although there are properties sold at auction which will require in-person bidding, but Big Sky Bid Real Estate Auctions will provide phone bidding opportunities if the bidder makes their intention to bid by phone within 24-hours by registering with Big Sky Bid Real Estate Auctions. Bidding can also be done with a Power of Attorney in the absence of a bidder. Big Sky Bid Real Estate Auctions offers online bidding opportunities with some real estate auctions.
Yes. Big Sky Bid Real Estate Auctions does cooperate with properly licensed Real Estate Brokers who register on Big Sky Bid Real Estate Auctions’ proper broker registration for their bidder/buyer at least 72-hours prior to the start of the auction or other defined registration terms of the auction. Other terms may apply on the Buyer Broker Co-Operation Agreement.
Arrive early for registration. Registration is usually open at least 2-hours before auction starts. Bring a valid driver’s license. You will receive your bidder number at this time. Although there will never be a registration fee you will have to present the required deposit funds – usually in the form of a cashier’s check made out to yourself. By arriving early you can get any further questions you have answered and be there if there are any announcements by the auctioneer. Announcements by the Auctioneer on Auction Day superceed all previous terms, annoucements, etc.
Yes. A Title Profile will be available for review in the Property Information Packet. The owners of the real estate will provide a Standard Owners Title Insurance Policy and real estate is transferred at closing with a prepared deed as required by law (warranty, specialty, trustee, etc.). If title cannot be delivered clear to buyer at closing buyer’s deposit is refunded – unless the terms and conditions or auctioneer announcement indicates otherwise.
All terms of auctioned property is “CASH at closing”. You can have your lender prepared to fund your purchase, but it is your responsibility to information your lender that there are NO CONTINGENCIES FOR APPROVED FINANCING and therefore the lender and you would already have predetermined how you and the lender will manage appraisal and inspection. Inspections can be done any time prior to the auction at the cost of the bidder. All real estate sold through auction is sold “as is – where is” per the given opportunity to perform inspections prior to the start of the auction. You would need to inform the lender that your deposit is non-refundable if you fail to close the purchase. These terms would be re-disclosed to both the bidder and their lender through a “Bidder-Lender Auction Registration” to bid on the property.
This means there is no guarantees or warranties as to condition with the property or personal property being sold at auction. The measure of “as is, where is” to all bidders is fully dependent upon their own due diligent efforts to discover anything that may deter them from bidding. Big Sky Bid Real Estate Auctions does provide a Property Information Packet to assist bidders in their due diligence. It is understood that all interested buyers come to the auction having done their own research, judgment and professional inspections. Participating in the Bidding is a clear understanding that bidder is satisfied in their due diligence and is committed to purchasing “as is-where is” if they become the winning bidder.
Big Sky Bid Real Estate Auctions will make preview/inspection times available throughout the marketing phase of the property. Additional private viewings can be arranged. You should bring all of the consultants that you would like to have a look at the property as well (lender, appraiser, inspector(s), contractors, etc.). Properties will be open (where feasible) on auction day. See the website and property information for these times and dates.
All closing costs are governed by individual states where the real estate is located. Because the consummation of the purchase through auction is considered a “Cash Transaction” the closing cost to the buyer is minimal which may include the Closing Agent Fee, Recording Fee, Buyer Premium, Legal Doc Prep Fee and other customary fees. (If the buyer is getting a loan from a lender the lender is required to provide the buyer a “Good Faith Estimate” of their closing costs). On property sold through foreclosure sale, tax lien sale, etc. the buyer may be responsible for back taxes and/or liens the property may have based on the offering disclosure of the property at auction. When a Buyer Premium is charged it is added to the final high bid to determine the Full Contract Price paid at closing by the bidder.
BE READY! Get your due diligence performed and property preview/inspections complete and funds for deposit & purchase lined up well in advance of the auction date. Never hesitate to contact Erich Gabriel the broker & auctioneer with Big Sky Bid Real Estate Auctions for assistance and to get your questions answered. Then Have FUN – BID & BUY!
Erich Gabriel – Broker – Auctioneer – 406-861-4490 – Broker@BigSkyBid.com